“There has been a lot of talk out there about cash balances that schools are sitting on. What isn’t talked about is that during the last two months of the fiscal year (May and June) districts receive around 25% of the entire budget from the state (when the school year is already over). Below is a table that shares the anticipated revenues for this upcoming May and June.

“Therefore, we must carry-over those funds to be used early the next school year. So carry over is to be expected and good business practice. Some of our most expensive bills come due in the fall before revenue is received. For example, in our district, we must have cash on hand to make payments of Special Education and Bond and Interest before we receive payments….without carryover, we would be not be able to make those payments on time. I don’t know what the “late fee” would be on $3,500,000, but I’m assuming it is quite hefty…

“I do not believe we, or anyone else is ‘hoarding’ money. I encourage you to take some time to read through the explanation of our fund balances. Our contingency fund, for example, would only keep our district’s doors open for fifteen days, barring any major catastrophe (the real reason the fund exists- for unplanned emergencies). We are planning another drop in our fund balances to offset rising costs and cuts delivered by the Governor / legislature. As a responsible superintendent working with a responsible Board of Education, we will not put our district’s finances in peril. Our fund balances are adequate (not ‘excessive’ as some have categorized them), and comparable to the business sector. Boards of Educations are comprised of great community leaders that are making wise financial decisions.

“I encourage legislators and other stakeholders to reach out to superintendents and/or directors of finance to fully understand how spending down cash balances may negatively impact a school district, and leave them without the cash needed to pay the bills when the bills are due.

“I contend that we would not be having this conversation had the state not spent down all cash reserves…

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